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# How to Enable Employment Allowance

## What is Employment Allowance?

Employment Allowance is a government initiative that allows eligible employers to reduce their annual Class 1 National Insurance (NI) liabilities by up to **£5,000**. This allowance is designed to support businesses, particularly small and medium-sized enterprises (SMEs), by lowering employment-related costs.

## Am I eligible for Employment Allowance?

For eligibility information, visit the [UK Government's Employment Allowance page](https://www.gov.uk/claim-employment-allowance/eligibility).

## When Should You Start Claiming?

You must claim Employment Allowance **every tax year** (April 6 to April 5). While you can submit your claim at any point during the tax year, **claiming early** ensures that you receive the allowance sooner, providing immediate reductions to your NI liabilities.

## How do I enable Employment Allowance in FreePayroll?

1. From the home screen, click on the "Company" section in the left-side menu, and then click on the "Allowances" subsection.
2. You will see a box labeled "Employment Allowance" with a button.
   - If the button says "Stop," then Employment Allowance is already enabled.
   - If the button says "Enable," then Employment Allowance is off. You can turn it on by clicking the button.
3. A popup will open:
   - If you migrated from another software where you were already claiming Employment Allowance, enter the amount you have already claimed.
   - Otherwise, simply click the "Enable" button.